Posts Tagged ‘employees’
Hired someone recently?
If you have hired someone recently, you could be eligible for a tax credit as well as not having to pay the employer’s portion of the social security tax… first, this is just my own understanding, you should check with your tax adviser of course.
If you hired them after Feb 3, 2010 and before January 1, 2011 and they had not worked for more than 40 hours the previous 60 days, you may qualify for a tax break (this includes laid off employees) through the newly passed HIRE Act. Basically, you do not have to pay the 6.2% social security tax for the first 52 weeks they are employed by you and you could be eligible for a $1000 tax break on your federal tax return.
For more information about the HIRE Act, please follow the links below:
IRS Site – http://www.irs.gov/newsroom/article/0,,id=220326,00.html
Intuit Site – http://payroll.intuit.com/federal_hire_act/index.jsp?cid=social_payroll_prpay_landing_hire
If you have an employee that qualifies for this, they will need to complete a W11. A copy of the W-11 form can be obtained at http://www.irs.gov/pub/irs-pdf/fw11.pdf
It’s important to note that you cannot hire a relative and take the credit. I found a great write up from Taxgirl’s blog (always full of good info if you’re a business/accounting geek).